Altcoin prices and Gambling dApps use on the Decline

Gambling decentralized applications are showing signs of losing their star power within the dApp landscape. This is because investors are increasingly looking at Decentralized finance dApps for their apparent viability.

In general, some Altcoins have had a torrid time of late. Ethereum dApp uses lagged significantly. For example, the daily trade volume of EOS and TRON dropped from $23 million to $1.2 million and $125 million to $65 million respectively.

The drop in dApp use from this altcoin platform has a corresponding effect on prices. Bitcoin has extended its dominance of total cryptocurrency market capitalization. The rise in Bitcoin prices has ramped up trading activity hence reducing excitement about altcoins that offer alternative non-financial dApps.

Gambling dApps, in particular, have had a 40 percent drop in transaction volume. Not so long ago, these were the choice dApps as they had the highest transaction volumes. The drop is only from Q1 of 2019 to Q3 figures.

DeFi dApps

Decentralized finance is a very consequential development in the blockchain era. Ethereum dApps like Maker DAO/DAI, Compound, and 0X intend to disrupt the current legacy financial services system. These dApps can give rise to a new and unique digital economy. The decentralization like all aspects of blockchain distributes power and convenience to community participants.

Accordingly, deFi dApps can greatly disrupt aspects like lending. Incidentally, investors seem inclined to notice their potential, at least according to the new numbers. P2P platforms that are in the finance sector are on roll.

Gambling Platform Trends

There was considerable movement in overall Ethereum gambling dApp use in recent months. The figures indicate a migration form such platforms as WINk to rival blockchain platforms. WINk is notable gambling dApp from the Tron platform. This dApp experienced a 50% drop in transaction volume during this period. Regardless, the dApp still has solid usage with transaction volumes of about $65 million a week.

Tron and EOS still call the shots in the dApp gambling scene. The majority of the transaction volumes for both platforms are gambling-related. Tron, for instance, has over 400,000 active users. Indeed, they have a considerable following but the recent trends are a cause for concern. The fact that gambling dApps are down is an alarming development for EOS for example which has 17 of its 25 top dApps as straight-up gambling dApps.

Understanding the Challenges

The future of these gambling dApp platforms may be existential. One has to wonder whether they were an early use case for blockchain that would eventually fade out. This is because the maturation process of blockchain technology would ultimately see mainstream uses like decentralized finance take over.

In recent months, Bitcoin prices have gone up considerably. Many investors are looking at decentralized finance more favorably as trading activity is back to all times. This is because it makes sense to diversify portfolios at a time like this.

Therefore, defi platforms offer a compelling value proposition in comparison to gambling dApps. Individuals and institutions get to leverage the borrowing and lending capabilities for more capital. The decentralized nature of such dApps makes them particularly ideal for such arrangements.

As such, gambling dApps are operating in an increasingly competitive environment. Despite the possibilities in decentralized gambling, mainstream activities like p2p lending still hold sway. Moreover, a possible tightening of regulatory measures in this industry will likely adversely affect gambling dApps. The fact that defi apps offer a sense of legitimacy provides a sense of cover even in anticipation of global AML and KYC requirements.

In all fairness, it would still be presumptuous to write the obituaries for gambling dApps. This sector will still retain a core user base even into the distant future. That said, the lucrativeness and attraction of gambling dApps will likely not have a promising trajectory.